Nairobi among favorite cities in Africa for Fortune 500 companies

April 18, 2017

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The most attractive cities in MEA region are Dubai, Johannesburg, Casablanca and Nairobi/FILE

By KENNEDY KANGETHE, NAIROBI, Kenya, Apr 18 – Nairobi is the leading destination for Fast Moving Consumer Goods companies seeking headquarters in Africa and tends to be the top choice for organizations looking to serve Eastern Africa.

This is according to a new report released by Infomineo, a global business research company specializing in Africa and the Middle East.

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The report indicates that Dubai and Johannesburg are the most popular hubs overall, but both Casablanca and Nairobi are rapidly gaining traction and international awareness.

“Financial services are more likely to base Middle East Africa (MEA) coverage from London, while technology companies are more inclined towards Casablanca or Lagos,” the report states.

According to the report, organisation’s selection of a specific city is determined by the local market potential, maturity of the industry, existing competitors, political stability and the quality of the employment market, among others.

“Determining the attractiveness of a location along these clear lines assures the Fortune 500 companies of a stable and profitable investment and significantly mitigates risk. The most attractive cities are Dubai, Johannesburg, Casablanca and Nairobi, and at the lower end of the spectrum, Cairo, Paris, Algiers and Cape Town,” the report underscores.

Egypt remains behind the leaders due to political instability; however, it has seen a 250 percent increase in Fortune 500 investment since 2015.

In 2016, 196 Fortune 500 companies had established a dedicated regional headquarters in the MEA region. In the Middle-East, Dubai is the most popular choice with 138 companies establishing a dedicated entity in the city.

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KENNEDY KANGETHE Kennedy is a Bachelor of Arts in Communication graduate from St. Paul's University and has been writing for the Capital FM Business Desk since 2013, Besides business news, he enjoys traveling, public